Even though that I think the chart of crude oil shows a bearish continuation triangle and prices in everything ultimately will go lower, just like we’re seeing in currencies with the New Zealand dollar, the Euro, the Australian dollar, the British pound – well, not everything is like the British pound going from 52-week highs two months ago to 52-week lows right now; things may be that bad overseas but not so much in the United States yet. But we have to remember that oil is priced in U.S. dollars; oil is not priced in euros.
If you were to actually take a look at the U.S. dollar, and it turned around from a quadruple bottom that I show you on the chart in the video. It’s failed to make new lows and now we’ve had a parabolic rise to seven-month highs. Once it crosses the line at $84.00, that’s when it will take out the July highs and actually hit new 52-week highs, so resistance will move. We are incredibly close to the U.S. dollar hitting new 52-week highs.
Just as a reminder, remember February, March and April of 2012, the dollar was unable to break down from around the $79 level and what happened? We saw a parabolic move north.
But I will remind you of what I tell my Trending123 subscribers: If you think it’s bullish, go long the U.S. dollar; if you think gold is bearish and going down, go short gold. But never go short one thing because something else looks good, or long another thing because something else looks bad.
But I should point out that we didn’t have any new lows in February, March or April 2012; we instead saw a parabolic up move and I point out coinciding market tops and bottoms on the chart in the video.
I know we have the yen carry trade going on right now, so there are probably a few other currency things to talk about but right now the U.S. dollar is this close from 52-week highs.
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. For more information on which service is for you click here.